Question

Dake Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Pixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $6.55 $3.50 $1.40 $2.60 $0.70 $0.40 $1.50 $0.45 For financial reporting purposes, the total amount of period costs incurred to sell 4,000 units is closest to:

multiple choice

a. $12,200

b. $4,400

c. $8,100

d. $7,800

Answer 1

Period Cost- of llencei- Peeriod wst are associated with the fassage time e le Non- manufacturing costo Whether they are fired or not Period Cost = Fixed selling exponse - + fixed Administrative expense + Sales Commission t variable administrative expense. - $ 0.7+ $0.4+ $1.5+ $0.45 - 83.05/unit Total Period Cost = 3:05 81000 -) $./99.00 Total Poeriod cost $12,200 option (as is corrent